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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 26, 2004 <br />Action Agenda <br />Item No. 5-G <br />SUBJECT: Motor Vehicle Property Tax Release/Refunds <br />DEPARTMENT: Revenue/Tax Collector PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Resolution <br />Release/Refund Data Spreadsheet <br />INFORMATION CONTACT: <br />Jo Roberson, Revenue Director, ext. <br />2727 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider adoption of a refund resolution related to 190 requests for motor <br />vehicle property tax releases or refunds. <br />BACKGROUND: GS 105-381(a)(1) allows a taxpayer to assert a valid defense to the <br />enforcement of the collection of a tax assessed upon his/her property under three sets of <br />circumstances: <br />(a) "a tax imposed through clerical error" <br />mathematical calculation; <br />for example when there is an actual error in <br />(b) "an illegal tax", such as when the vehicle should have been billed in another county, an <br />incorrect name was used, or an incorrect rate code (the wrong combination of applicable <br />county, municipal, fire district, etc. tax rates) was used; <br />(c) "a tax levied for an illegal purpose", which would involve charging a tax which was later <br />deemed to be impermissible under state law. <br />GS 105-381(b), "Action of Governing Body" provides that "Upon receiving a taxpayer's written <br />statement of defense and request for release or refund, the governing body of the taxing unit <br />shall within 90 days after receipt of such a request determine whether the taxpayer has a valid <br />defense to the tax imposed or any part thereof and shall either release or refund that portion of <br />the amount that is determined to be in excess of the correct liability or notify the taxpayer in <br />writing that no release or refund will be made". <br />For classified motor vehicles, GS 105-330.2(b) allows for a full or partial refund when a tax has <br />been paid and a pending appeal for valuation reduction due to excessive mileage, vehicle <br />damage, etc. is decided in the owner's favor. <br />FINANCIAL IMPACT: Approval of these release/refund requests will result in a net reduction of <br />$13,092.43 to Orange County, the towns, and school and fire districts.